TAPPING AMERICA’S POTENTIAL The Education for Innovation Initiative GOAL: Increase the annual number of U.S. science, technology, engineering and mathematics bachelor’s-level graduates to 400,000 by 2015. Progress Report 2008 www.tap2015.org AeA Business-Higher Education Forum Business Roundtable Council on Competitiveness Information Technology Association of America Information Technology Industry Council Minority Business RoundTable National Association of Manufacturers National Defense Industrial Association National Venture Capital Association Semiconductor Industry Association Software & Information Industry Association TechNet Technology CEO Council Telecommunications Industry Association U.S. Chamber of Commerce Gaining Momentum, Losing Ground
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TAPPING AMERICA’S POTENTIALThe business organizations formed the Tapping America’s Potential (TAP) coalition to advocate for renewed attention to U.S. competitiveness and America’s
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TAPPING AMERICA’S POTENTIAL The Education for Innovation Initiative
G O A L :
Increase the annual number of U.S. science, technology,engineering and mathematics bachelor’s-level graduates to 400,000 by 2015.
Progress Report 2008 www.tap2015.org
AeA
Business-Higher Education Forum
Business Roundtable
Council on Competitiveness
Information Technology Associationof America
Information Technology IndustryCouncil
Minority Business RoundTable
National Association ofManufacturers
National Defense IndustrialAssociation
National Venture CapitalAssociation
Semiconductor IndustryAssociation
Software & Information Industry Association
TechNet
Technology CEO Council
Telecommunications IndustryAssociation
U.S. Chamber of Commerce
Gaining Momentum, Losing Ground
C O N T E N T S
Introduction 2.
Update on TAP Goal
3.
Progress on the TAP Agenda
5.
Conclusion
12.
Appendix
14.
July 2008
TAPPING AMERICA’S POTENTIAL The Education for Innovation Initiative
Gaining Momentum, Losing Ground
Tapping America’s Potential: Progress Report 2008
2
Introduction
The Business Community Takes a Stand
In July 2005, 15 of America’s most prominent business organizations1 joined
together to express their deep concern about the ability of the United States to
sustain its scientific and technological leadership in a world
where newly energized foreign competitors are investing in
the capacity for innovation — the key driver of productivity
and economic growth in advanced economies.
The business organizations formed the Tapping America’s
Potential (TAP) coalition to advocate for renewed attention
to U.S. competitiveness and America’s capacity to innovate.
TAP established a goal to double the number of U.S. science,
technology, engineering and mathematics (STEM) graduates
with bachelor’s degrees by 2015.
TAP and other business, scientific and education coalitions
helped to galvanize broad bipartisan agreement among
federal policymakers on the need for action on U.S. competi-
tiveness. Despite this consensus, and the enactment of
landmark authorizing legislation, Congress and the adminis-
tration have thus far failed to adequately fund the
innovation policy agenda advocated by TAP.
America’s business leaders are frustrated that while governments around the world
are building their national innovation capacity through investments in research and
STEM education, the United States is standing still. Failure to change the status
quo places America’s future economic and technological leadership at risk.
1. AeA, Business-Higher Education Forum, Business Roundtable, Council on Competitiveness, Information Technology Association of America, InformationTechnology Industry Council, Minority Business RoundTable, National Association of Manufacturers, National Defense Industrial Association, SemiconductorIndustry Association, Software & Information Industry Association, TechNet, Technology CEO Council, Telecommunications Industry Association, and U.S.Chamber of Commerce are the original 15 organizations that released the report in July 2005. National Venture Capital Association joined later that year.
America’s BusinessLeaders Are Committed
In the three years since the TAP
report was released, data on U.S.
student performance, global eco-
nomic competition and the link
between innovation capacity and
long-term economic performance
have only served to reinforce the
deep consensus in the business
community that the United States
must address its competitiveness
challenges. American business
leaders are more committed than
ever to the policy agenda laid out
in the 2005 report.
Gaining Momentum, Losing Ground | www.tap2015.org
3
Update on TAP Goal
The business organizations that came together in 2005 to
found TAP established a bold 10-year goal: “Double the
number of U.S. science, technology, engineering and mathe-
matics graduates with bachelor’s degrees by 2015.”
America’s business leaders recognize that highly educated
technical professionals constitute the key differentiator in
global economic competition. They are the world’s innova-
tors, and their presence attracts capital and infrastructure
investments, feeding a virtuous cycle of investment and
capacity building that drives more rapid innovation, acceler-
ated productivity growth, and higher levels of sustained
economic growth and high-wage employment.
At the time the goal was established, 2001 was the most
recent year for which data were available on U.S. bachelor’s degrees. In that year,
slightly more than 200,000 STEM bachelor’s degrees were awarded to U.S. citizens
“The key to America’s competitive-
ness challenge is innovation.
Technological innovation drives
productivity growth. It creates
new products and processes —
even whole new industries —
thereby generating high-wage
employment and a higher
standard of living for all
Americans. ... The wellsprings
of innovation require constant
nurturing, and maintaining U.S.
innovation leadership demands
hard work and investment. We
can meet this challenge.”
— Harold McGraw III
Chairman, President and CEO
The McGraw-Hill Companies
Deg
rees
Aw
arde
d
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Year
TAP Goal
STEM degrees awarded to U.S. citizens and permanent residents, 2001–06
U.S. STEM Bachelor’s Degree Production Not on Track To Meet TAP Goal
Source: National Science Foundation.
Tapping America’s Potential: Progress Report 2008
4
and permanent residents. In the prior decade, the number of STEM bachelor’s
degrees awarded annually was relatively stable and hovered slightly below 200,000.
Over the same period, projected demand for STEM graduates in the U.S. workforce
grew markedly, and economic competitors, such as China and India, greatly
increased their output of STEM graduates. The TAP goal of 400,000 U.S. STEM
graduates with bachelor’s degrees by 2015, while ambitious, is necessary to meet
future workforce demands and the global competitiveness challenge.
Since the TAP report was issued three years ago, 2002–2006
data have become available that show U.S. STEM bachelor’s
degrees awarded in that period fall short of what will be
required to reach 400,000 by 2015. While the number of
STEM degrees awarded has remained relatively flat for three
years, the policy changes the business community has called
for to attract and retain more undergraduate STEM majors
have not been enacted. Congress has authorized, but not yet
funded, the expansion of science and engineering research
and STEM education programs that will make STEM majors
more attractive to undergraduates.
Private-sector demand for STEM graduates has increased
and may help pull more students into these majors. The
latest STEM workforce data show that, in 2006, the already
low unemployment rate for STEM graduates dropped to 2.5
percent, and starting salaries were higher for students gradu-
ating with STEM degrees, particularly those with engineering
degrees, than for most other majors.
In addition, there is a desperate need for STEM majors to
teach math and science in U.S. schools. Research indicates that a highly qualified
teacher is one of the most important factors in raising student achievement, yet
according to the Bureau of Labor Statistics, school districts across the country
have difficulty hiring qualified math and science teachers.
Why Major in a STEMField?
There are a number of reasons
why students should pursue a
bachelor’s degree in STEM fields,
including:
n
The Bureau of Labor Statistics
projects that employment in
science and engineering occu-
pations will grow 70 percent
faster than the overall growth
for all occupations.
n
STEM graduates on average
enjoy better employment
prospects and higher starting
salaries than graduates in
non-STEM fields.
Gaining Momentum, Losing Ground | www.tap2015.org
5
Progress on the TAP Agenda
Recommendations Progress
1. Build public support for making
improvement in STEM performance a
national priority.
Mixed Progress
Uneven public understanding but
broad bipartisan support among
policymakers at all levels
2. Motivate U.S. students and adults,
using a variety of incentives, to study
and enter STEM careers, with a spe-
cial effort geared to those in currently
underrepresented groups.
Mixed Progress
Strong initial federal response but
relatively weak follow-through; strong
support from business leaders and
states
3. Upgrade K–12 math and science
teaching to foster higher student
achievement, including differentiated
pay scales for mathematics and
science teachers.
Little Progress
Greater attention from states, local
school systems and the private sector
but no significant federal response
4. Reform visa and immigration poli-
cies to enable the United States to
attract and retain the best and bright-
est STEM students from around the
world to study for advanced degrees
and stay to work in the United States.
No Progress
Broader immigration politics
prevented enactment of widely
supported targeted reforms for
highly educated, foreign-born
professionals
5. Boost and sustain funding for basic
research, especially in the physical sci-
ences and engineering.
No Progress
Despite broad bipartisan consensus,
federal policymakers have not
increased funding to match their
pledges
Progress on Recommendations
Tapping America’s Potential: Progress Report 2008
6
Building a Consensus for Investments in U.S. Innovation
Since the TAP recommendations were issued three years ago, the policy landscape
has changed in a positive direction, but progress toward implementation has been
frustratingly halting and slow.
The policies TAP advocates are not new. For more than 10
years, economists and policy experts have pointed out that
America’s failure to invest adequately in its innovation capac-
ity will have negative long-term consequences for U.S.
economic competitiveness. Those voices have only grown
louder as global economic competition has grown more
intense and America’s competitors have increased their
investments in math and science education and in science
and engineering research.
What is new, however, is the deep commitment of America’s
business leaders to change the dynamic and reorient national
policy toward greater investment in U.S. innovation leader-
ship. The July 2005 TAP report was but one expression of
this new commitment.
From Rhetoric to Legislation
In November 2005, then-Minority Leader of the House of Representatives Nancy
Pelosi unveiled the House Democrats’ Innovation Agenda calling for increased fed-
eral investments in science, research, and math and science education, as well as
incentives for small business to increase its innovation capacity.
President Bush, responding to the concerns of America’s business leaders,
announced the American Competitiveness Initiative (ACI) in his February 2006 State
of the Union address to Congress, which proposed to double federal support for
basic physical sciences and engineering research over 10 years at three key civilian
“America’s horn of plenty over the
past century has been filled by
our ability to innovate and create
new technologies that spur eco-
nomic growth and improve the
quality of our lives. The race
to stay ahead in the brain race
is critical to our future world
leadership, and we need our
government, our education
system and the private sector to
step up to the challenge.”
— Anne M. Mulcahy
Chairman and CEO
Xerox Corporation
7
science agencies, to renew the federal commitment to improving U.S. student
achievement in math and science, and to implement high-skilled immigration reform
and a permanent R&D tax credit.
For the first time, an American president and congressional leaders articulated
an explicit link between physical sciences and engineering research and student
achievement in math and science, and future U.S. economic competitiveness. The
ACI and the House Democrats’ Innovation Agenda were more than just budget pro-
posals — they were a new rationale for public investments in America’s science and
technology enterprise.
As a result of these and related legislative efforts, on August 9, 2007, the America
COMPETES Act was signed into law. The legislation authorizes an increased federal
investment in STEM education and science and engineering research. The America
COMPETES Act is designed to:
n
Strengthen K–12 math and science education by
improving teacher training in math and science; increas-
ing support for the Robert Noyce Scholarship Program,
which provides scholarships for STEM undergraduate
majors who agree to become K–12 math and science
teachers; increasing the number of teachers prepared
to teach Advanced Placement and pre-International
Baccalaureate college preparatory courses; and providing
Math Now grants to improve elementary and secondary
math instruction.
n
Expand undergraduate and graduate science and
engineering programs through increased support for
the National Science Foundation (NSF) STEM Talent
Expansion Program, which provides grants to universities
to devise creative programs to recruit and graduate more
undergraduate STEM majors.
“Our companies have an opportu-
nity to give back to the com-
munity, to help students get
excited about education in
general, and math and science
in particular. We can help them
make the connection between
studying math and science now
and having great careers in engi-
neering and science later.”
— William H. Swanson
Chairman and CEO
Raytheon Company
Gaining Momentum, Losing Ground | www.tap2015.org
Tapping America’s Potential: Progress Report 2008
8
n
Increase funding for basic research in the physical sciences by authorizing
substantial new investments in basic research at NSF, the National Institute of
Standards and Technology (NIST), and the Department of Energy (DOE) Office
of Science — providing a blueprint for future appropriations to double research
at these key agencies in seven to 10 years.
The America COMPETES Act is a significant policy advance for U.S. innovation
and competitiveness. However, unless sufficient appropriations follow over the
next several years, the TAP agenda with regard to STEM education and science
and engineering research will not be realized.
Two Steps Forward, One Step Back
In a disheartening repeat of previous years, deep consensus and nearly unique
bipartisan agreement on the need to make innovation a priority did not, in the end,
result in significant increased funding for basic research in the physical sciences or
STEM education. Instead, appropriations provided either flat
funding or real declines in fiscal year (FY) 2008, in constant
dollar terms, for research and education programs.
There is an urgent need, however, to forge ahead to meet
the TAP goal. Recent data illustrate why business leaders and
policymakers must continue working together on STEM edu-
cation priorities if the United States is to remain the world’s
innovation leader.
“America’s economic future lies
with its next generation of work-
ers and their ability to develop
new technologies and products.
This means we must strengthen
math and science education in
the U.S.”
— Craig Barrett
Chairman
Intel Corporation
Gaining Momentum, Losing Ground | www.tap2015.org
9
Weak U.S. Performance in Science and Mathematics Literacy
Average scores of 15-year-old students on combined science literacy scale andmathematics literacy scale, by Organisation for Economic Co-operation andDevelopment (OECD) jurisdiction, 2006
Combined science literacy scaleJurisdiction ScoreOECD average 500
Average is notmeasurably differentfrom the U.S.average
Average is lowerthan the U.S.average
Source: National Center for Education Statistics, U.S. Department of Education and Institute of Education Sciences,Highlights from PISA (Programme for International Student Assessment) 2006, 2007.
10
Tapping America’s Potential: Progress Report 2008
Investments in Basic Research Drive Innovation
Investments in basic research, particularly in the physical sciences and engineering, have
led to a wide range of transformative innovations that have spawned new industries, cre-
ated new high-wage jobs and positively impacted our daily lives. From medical imaging
and laser-based medical therapies to global positioning systems (GPS) and MP3 players,
federally funded research has been the foundation of many groundbreaking scientific
discoveries, including the following:
Magnetic Resonance Imaging (MRI)
n
MRI technologies save lives every day by providing detailed images that help physi-
cians detect critical illnesses, often during the early stages of development.
n
From the 1970s to the 1990s, the National Institutes of Health, NSF and DOE
funded research that led to the development of MRI.
GPS
n
GPS provides travelers with in-vehicle navigation, enables emergency and rescue
workers to locate people in distress, and allows researchers to track and monitor
natural disasters.
n
The Department of Defense (DoD), DOE, the Air Force and Office of Naval Research
funded research leading to the development of GPS.
Semiconductors
n
Personal computers, cellular phones, MP3 players, cameras, video recorders, medical
equipment and other devices all rely on semiconductors to function.
n
NSF, DOE, Defense Advanced Research Projects Agency, Office of Naval Research
and the Air Force funded research to develop and enhance semiconductors.
These and many other innovations arising from federal research investments also have
spurred new industries, reinvigorating the nation’s manufacturing and creating high-
wage jobs — a model that can serve the United States into the future with an increase
in government resources targeted to basic research.
Gaining Momentum, Losing Ground | www.tap2015.org
11
Can We Get There from Here?
Given the limited progress to date on raising U.S. undergraduate STEM major
graduation rates, is TAP’s goal of producing 400,000 U.S. graduates annually with
bachelor’s degrees in STEM fields achievable? The answer is yes, but only if policies
are in place to create the right incentives.
The America COMPETES Act, if funded in spending bills yet to be enacted, will help
to increase demand for STEM graduates by doubling federal support for basic
research in math, engineering and physical sciences; increase the supply of incoming
freshmen with the requisite skills to pursue STEM majors by improving K–12 STEM
education; and increase recruitment of new STEM majors by highlighting the value
of STEM careers and their importance to individual and national economic success.
In the appendix, we present examples of progress made
toward each of the specific recommendations offered in the
2005 TAP report. The story is one of a glass half full. The
business community has helped change the political and pol-
icy landscape; and nearly all of TAP’s recommendations are
included in pending legislation, recently enacted legislation
or in the president’s budget request. To date, however, very
few have been implemented. The number of undergraduate
STEM degrees won’t begin to grow at the requisite rate until
more resources start flowing into university research pro-
grams, new — and newly energized — math and science
teachers start flowing into K–12 schools, and STEM teaching
and student performance improves — at all levels.
“Highly skilled workers, trained in
science, technology, engineering
and mathematics, are the ones
who generate breakthrough
innovations that lead to produc-
tivity gains, economic growth
and higher standards of living.
America enjoys a high standard
of living, but we are falling
behind in producing the technical
talent we will need to sustain
our economic leadership in the
world.”
— Joseph M. Tucci
Chairman, President and CEO
EMC Corporation
Tapping America’s Potential: Progress Report 2008
12
Conclusion
Since the TAP report was issued three years ago, Congress and the administration
appeared to get serious about addressing America’s competitiveness challenge but
have failed to provide matching federal money for STEM education and science and
engineering research.
The America COMPETES Act, signed into law last year, represents a substantial step
forward toward the realization of the TAP innovation agenda. Follow-through by
Congress and the administration on spending bills over the next several years will be
necessary, however, before the vision of significantly enhanced U.S. innovation
capacity embodied in the Act becomes reality.
The collapse of comprehensive immigration reform in 2007 has stymied much-
needed reform of the employment-based green card and H-1B visa systems. Highly
educated foreign-born professionals, particularly those edu-
cated at U.S. universities, are one of America’s greatest
competitive advantages. The United States should embrace
these innovators rather than sending them home to com-
pete against U.S. businesses.
It is incumbent upon the business community to maintain
the pressure on policymakers to see that the TAP agenda is
fully enacted and implemented. In particular, TAP’s priorities
include:
n
Funding basic science and engineering research at
U.S. universities at the levels authorized in the America
COMPETES Act;
“The nature of competition and
the forces of innovation shift
the frontiers of science, business
and technology at a rate we've
never seen before. ... To be
competitive, any individual —
like any company, community
or country — has to adapt
continuously, learning new fields
and new skills.”
— Samuel J. Palmisano
Chairman and CEO
IBM Corporation
Gaining Momentum, Losing Ground | www.tap2015.org
13
n
Funding STEM education programs at the levels authorized in the America
COMPETES Act, including funds for expanding the Robert Noyce Scholarship
Program at NSF, Math and Science Partnerships (MSP) programs at both NSF
and the Department of Education, Math Now, Adjunct Teacher Corps, and
programs to develop and expand Advanced Placement and International
Baccalaureate programs;
n
Enacting targeted reforms to welcome more highly educated foreign-born
professionals into the United States; and
n
Complementing federal action with state, local and private-sector initiatives.
The business community continues to feel a sense of urgency about the future
competitive position of the United States. If anything, the stakes are higher today
than when the TAP report was released three years ago.
While federal innovation investments have stalled in the
United States, foreign competitors are continuing to build
their own capacity to innovate by investing in research and
education, opening their doors to talent from around the
world, and creating a favorable climate — through tax credits
and other incentives — to attract private-sector research
investments.
If policymakers continue to take U.S. economic and techno-
logical leadership for granted, they will leave us with an
America that is potentially weaker and less able to compete
in the global economy. For the sake of our children and
grandchildren, we cannot afford to let that happen.
“The bottom line is that improved
training in science, technology
engineering and math provides
benefits to all students, which will
in turn help ensure a productive,
innovative workplace — in all
fields — for decades to come.”
— Michael G. Morris
Chairman, President and CEO
American Electric Power
Company, Inc.
Tapping America’s Potential: Progress Report 2008
14
Appendix: Examples of Progress on Specific TAPRecommendations
Recommendations Examples of Progress
1. Build public support for making improvement in
STEM performance a national priority.
• In the three years since the TAP report was issued,
although there has not been significant change in public
attitudes, there is now widespread recognition among
state and federal policymakers that improvement of
math and science education and more robust support
for science and engineering research must be key
national priorities. The National Academies’ “Rising
Above the Gathering Storm” report played a major role
in raising public awareness and building support.
Launch a campaign to help parents, students, employ-
ees and community leaders understand why math and
science are so important to individual success and
national prosperity. (Business)
• Business has stepped up to the challenge and has launched
several initiatives, particularly in math and science educa-
tion, to expand technical literacy and communicate the
value of math and science for both individual career
success and national economic competitiveness.
• Examples include ExxonMobil’s print, Internet and televi-
sion ads in conjunction with the company’s $125 million
contribution to the National Math and Science Initiative;
Business Roundtable’s work with North Castle on teen
attitudes toward math and science; and the public educa-
tion campaign funded by The Broad Foundation and the
Bill & Melinda Gates Foundation to make education a
front-burner issue in the 2008 presidential campaign.
Expand the State Scholars Initiative to encourage
students to take rigorous core academic courses in
high school. (Business)
• The State Scholars Initiative, www.wiche.edu/
Statescholars, with funding from the U.S. Department
of Education, operates in 24 states and uses business
leaders to motivate students to complete a rigorous
course of study in high school.
Provide role models and other real-world examples of
the work that engineers and scientists do. (Business)
• TAP launched a Web-based campaign profiling CEOs
with technical degrees to illustrate the fact that science
and engineering are the most common undergraduate
degrees among Fortune 500 chief executives; dozens of
companies provide scientists and engineers to speak at
schools and conduct lessons.
• The Maryland Business Roundtable for Education launched
a teen Web site, www.BeWhatIWantToBe.com, that
includes profiles of scientists and engineers in the state.
(continued)
Gaining Momentum, Losing Ground | www.tap2015.org
15
Recommendations Examples of Progress
2. Motivate U.S. students and adults, using a variety
of incentives, to study and enter STEM careers, with
a special effort geared to those in currently under-
represented groups.
• On February 2, 2006, President Bush signed into law
the Deficit Reduction Act of 2005, which established
academic competitiveness grants and Science,
Mathematics and Research for Transformation (SMART)
grants to encourage more U.S. students to pursue under-
graduate degrees in math, science and engineering.
• A 2008 summit meeting, America’s Competitiveness:
Hispanic Participation in Technology, sponsored by IBM
and cosponsored by ExxonMobil, Lockheed Martin and
Univision, focused on specific actions to increase STEM
majors and careers.
Create more scholarships and loan forgiveness programs
for students who pursue two-year, four-year and gradu-
ate degrees in STEM (including students who plan to
teach math and science, particularly in high-poverty
schools). (Federal, State, Business)
• The Deficit Reduction Act of 2005 made student loan
forgiveness programs for science and math teachers in
high-need areas permanent and raised the maximum
amount eligible for forgiveness to $17,500.
• An example among the many corporate-supported STEM
scholarships, Texas Instruments’ Math Scholars program at
the University of North Texas Dallas Campus provides
scholarships to encourage students, especially from
underrepresented groups, to get bachelor’s degrees in
math with math teacher certification and agree to teach in
Dallas-area schools for at least two years after graduation.
Build on existing programs such as SMART at the DoD,
the Science and Technology Scholarship Program at
NASA, Robert Noyce scholarships at NSF, and federal
loan forgiveness programs that provide up to $17,500
for secondary math and science teachers. (Higher
Education, Business, Federal, State)
• On August 9, 2007, President Bush signed into law the
America COMPETES Act, which authorizes expansion of
the Robert Noyce Scholarship Program: $90 million in
FY 2008.
• The Consolidated Appropriations Act of 2008, which
funds civilian agencies for FY 2008 and was enacted into
law in December 2007, directs NSF to increase funding
for this program by a very modest amount: $15 million in
FY 2008.
Supplement Pell Grants for eligible students who suc-